ANSWER

The majority of analytical and trade systems is based on a price research.

Our approach and the technology of the Volume analysis constructed by us are multidirected (with accent shift at a research of data on statistics on the trading volumes) that allows traders to structure professionally data of three key parameters of each transaction at once: volume, time and price. Than you conduct fuller and exact work on data processing on each transaction, especially you have qualitative analytics that, respectively, increases the level of your forecasts and finally quality of your transactions.

To see and use great and small market opportunities, to base the strategy on objective statistical parameters – it definitely leads to creation of steadier trade situation.

The statistical concept is one of advantages of an analytical and technological kernel of the Volume analysis. Why we have shifted focus of attention to a research of volumes? We will address logic. All of us know that in the conditions of the market demand dictates the prices. This formula is known to any who is familiar with elements of economic science. But what is an embodiment and real confirmation of demand in the financial market? Of course, indicators of volumes. And if you see significant indicators of volumes, on any price range on any financial instrument, it defines the objective importance of this price range.

The interrelation mechanism volume – the price can be displayed schematically as follows:

The zone of formation of volume is a zone of consolidation of the market — a zone of formation of an impulse which will push out the prices. Therefore we see accumulation of volumes in the beginning, and then the movement from the level of the maximum volume. FOR THIS REASON we SPEAK ABOUT HIGH PREDICTIVE FUNCTION of VOLUMES and about delay of the indicators of the old technical analysis which are based on the price.

Operating with statistics on volumes and being based on knowledge of auction model of market development, it is much simpler to understand the mechanism of redistribution of money in the market:

- Volumes show objective interest price range and degree of pressure upon the prices from this or that group of participants of the market

- Demand dictates the prices: volume always goes ahead of the price, predictive function of indicators of volumes from here

- An indicator of max. volumes form objective zones of support and resistance, forming a grid of probabilistic passes of the price.

- Fixing of large volumes – fixing of actions of large players (in fact the insider).

- Use of the principles of the volume analysis is accurate and in an objective form limits risks, reducing them to surprisingly low parameters.

- The data on the trading volume which are correctly entered into a market context provide indisputable advantages to any bidder.

From here:

- Big knowledge of the processes happening in the market (such width and depth of a research of data which other methods don't provide)

- Objectivity of the analysis

- Logicality and sequence of a concept

- The psychological support, stability, is less than mistakes and casual transactions.